CPATrader

Similar to ryanwtyler, I am thinking about it based on the balance sheet equation (not sure if this is the correct way to think about it but it works for me). Assets and liabilities increase and include the total value of the acquired company, including the Non-controlling interest. Equity needs to be offset by some amount to keep the equation in balance and that amount is the NCI that isn't reflected in equity but is reflected in assets and liabilities...

FYI Schweser contradicts this and says equity decreases by NCI and therefore stays the same under all methods (equity, prop con, and con)...I am going to assume it is best to go with CFA here. This shows up in their EOCs and the mock test from what I remember.